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Open Letter To Presidential Economic Team: Stop Derailing President Tinubu’s Renewed Hope Agenda - Osita Okechukwu
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Dear Presidential Economic Team,
May I humbly appeal via this Open Letter and earnestly urge the Presidential Economic Team to patriotically consider the gruesome economic hardship in the land, so as to stop derailing President Tinubu’s Renewed Hope Agenda meant to uplift millions out of poverty.
Am making this humble appeal because am not the only foundation member of the APC who wants our great party to succeed; albeit many do not want our great to go into 2027 general elections limping in the midst of widespread discontent, despondency and despair.
Secondly, one sincerely thinks that President Tinubu means well and wants to successfully consolidate the neoliberal capitalist system by taking bold decisions to bolster economic resorgimento in Nigeria via his Renewed Hope Agenda.
Luckily for us Nigerians, President Tinubu has harvested the fine tenets of classical Non-Alignment-Doctrine; consequent upon his cordial diplomatic relationship with the West and the East.
Hence Mr President inspite of the economic hardship and gross inequality has mobilised all the necessary international powers to utilise our demographic youth advantage in an aging world to consolidate the CHANGE our great party APC pledged in July 2013.
This is why am appealing to the Presidential Economic Team to reverse their gear and listen to Albeit Einstein’s admonition; that it’s illogical doing the same thing over and over again and expecting different results. Therefore let’s assist Mr President to succeed and pull out of this adverse economic condition so that Nigerians can breathe.
Accordingly this why as a roadside political economist am crying out in pain over the inadvertent derailing of the Renewed Hope Agenda. For am yet to reconcile how the program could be successfully executed when only 25% of the 2024 Capital Budget was released; moreover when we are regrettably operating multi-budgets.
Paradoxically the derailing is going on despite huge debts, increased tariffs, excessive taxation and the fact that all revenue generating agencies - NNPC, Nigeria Customs, FIRS had exceeded their 2024 targets - N13.1trillion vs N12.3trillion, N5.352trillion vs N5.09trillion and N5.7trillion vs N4.0trillion respectively.
One recalls with nostalgia President Tinubu’s July 2023 profound broadcast statement on why he removed the fuel subsidy, quote interalia, “To be blunt, Nigeria could never become the society it was intended to be as long as such small, powerful yet unelected groups hold enormous influence over our political economy and the institutions that govern it.
“The whims of the few should never hold dominant sway over the hopes and aspirations of the many. If we are to be a democracy, the people and not the power of money must be sovereign.
“This group had amassed so much wealth and power that they became a serious threat to the fairness of our economy and the integrity of our democratic governance.”
Is it not the same train of absurd Mr President frowned at that the Presidential Economic Team is boarding by not instantly and publicly disclosing how much that accrued from Fuel Subsidy removal; when the Joint Appropriation, Budget and Finance Committees of the National Assembly demanded it last week?
The Presidential Economic Team, should kindly remember that even the late military Head of State, General Sani Abacha diligently utilsed monies which accrued from his fuel subsidy removal with social and physical infrastructure via the Petroleum Trust Fund (PTF), which was beneficial to Nigerians.
My humble submission is that the Presidential Economic Team should not forget that Mr President’s statement above presupposes that he wants to seamlessly win the 2027 presidential election and end up 2nd Term as a progressive statesman.
Mr Osita Okechukwu
Foundation Member APC
Amid the ongoing controversy surrounding the proposed tax reform bills by the current administration, the Federal Government and 21 out of the 36 states in the federation have projected a combined Value Added Tax revenue of N2.5 trillion for 2025 in their respective budget estimates.
This projection excludes additional funds that may accrue from the implementation of the contentious tax reform bills.
VAT, a consumption tax on goods and services, is levied at each stage of the supply chain where value is added.
Sunday PUNCH previously reported that VAT revenue collected under the current administration increased by N549bn within six months.
This figure was derived from financial reports released by the Federation Account Allocation Committee between October 2023 and March 2024.
An analysis of the 2025 budget documents from the Federal Government and 21 states revealed a combined VAT revenue projection of about N2.53tn, representing a significant increase of N1tn (65.8 per cent) compared to the N1.527tn projected in 2024.
The 21 states include Kebbi, Kaduna, Ekiti, Oyo, Osun, Ogun, Enugu, Borno, Ondo, Kano, Katsina, Ebonyi, Gombe, Anambra, Abia, Niger, Jigawa, Bauchi, Akwa-Ibom, Adamawa, and Delta. Budget documents for the remaining 14 states and the Federal Capital Territory were unavailable.
In 2024, the Federal Government’s share of VAT revenue was N512.8bn, but it is projected to rise to N972bn in 2025. Similarly, Kebbi State, which received N41bn from VAT in 2024, anticipates N87.3bn this year. Kaduna State’s VAT revenue is projected at N57.8bn, up from N48.2bn in its 2024 budget.
Ekiti State plans to generate N54.9bn in VAT revenue this year, compared to N52.6bn in 2024.
Oyo State, which earned N78.8bn from VAT in 2024, projected N144bn for 2025, while Osun State expects N78.1bn, up from N45.3bn last year.
Other states such as Ogun, Enugu, Borno, Ondo, Kano, Katsina, Ebonyi, Gombe, and Anambra have projected VAT revenues of N85bn, N74.9bn, N87.3bn, N71.5bn, N97.3bn, N85.9bn, N50.8bn, N39bn, and N92.4bn respectively for 2025.
In comparison, their 2024 projections were N57.7bn, N44bn, N49.4bn, N30.3bn, N76.6bn, N46.9bn, N36.5bn, N30bn, and N58.4bn respectively.
Similarly, Abia, Niger, Jigawa, Bauchi, Akwa-Ibom, Adamawa, and Delta have projected VAT revenues of N60.6bn, N64.6bn, N80bn, N78.5bn, N70bn, N52.5bn, and N46.6bn respectively for 2025. Their projections for 2024 were N40bn, N50.6bn, N45bn, N45bn, N45bn, N47bn, and N45.7bn.
Attahiru Jega, co-chairman of the presidential livestock reforms implementation committee, says Nigeria’s livestock sector is starting to attract foreign investors.
The former Independent National Electoral Commission (INEC) chairman said the federal government’s reforms are fuelling the interest.
He said partnerships with global players are crucial to achieving the sector’s full potential.
Jega spoke on Saturday during the inauguration of the Ngarannam Livestock Improvement and Ranch Settlement in Mafa LGA of Borno state.
While delivering the keynote address, Jega said the settlement is part of a broader national effort to modernise Nigeria’s livestock sector.
He called for collective action from private and public stakeholders to ensure the effectiveness and sustainability of the government’s reforms.
“The livestock reforms are not just the responsibility of the federal government or the state governments alone. It is critical that all stakeholders ranchers, farmers, policymakers, and international partners work together to ensure the success of this initiative,” he said.
Jega said it is important to integrate innovative solutions to boost productivity and ensure long-term sustainability.
“We must embrace modern ranching techniques, focus on breed improvement, and provide adequate training to livestock farmers. This will enhance the quality of meat and dairy products while creating jobs and economic opportunities for our people,” he said.
“International partners such as JBS S.A., Saudi Arabia, the United States, and China have already expressed interest in investing in our livestock sector. This is a clear indication that the reforms we are implementing are gaining global recognition.”
Baba Usman-Ngelzarma, the national president of the Miyetti Allah Cattle Breeders Association of Nigeria (MACBAN), described the livestock settlement as a testament to a “collective commitment” toward enhancing the livelihood of pastoralists.
“This initiative is not just a beacon of hope but a practical solution to many of the problems faced by pastoralist communities,” he said.
“It is a testament to what we can achieve when we come together with a common purpose and share a commitment to progress.”
The MACBAN president commended President Bola Tinubu for creating the ministry of livestock development, adding that the sector currently employs over 20 million Nigerians and has the potential to create more jobs.
Umar Kadafur, the deputy governor of Borno, said the Ngarannam ranch is equipped with over 27 essential facilities, including a breeding centre, earth dams, and solar-powered boreholes for irrigation and livestock needs.
Kadafur, who doubles as the state’s commissioner for livestock development, added that over 200 hectares of rain-fed pasture had been cultivated to support year-round grazing.
Central Bank of Nigeria (CBN) has introduced a non-resident Nigerian Investment Account (NRNIA) and Non-Resident Nigerian Ordinary Account (NRNOA) to manage funds (both in foreign and local currencies) from Nigerians in diaspora.
The apex bank disclosed this on Friday in a circular signed by W.J. Kanya, acting director, Trade and Exchange Department. It stated that with the NRNOA, non-resident Nigerians (NRNs) will be able to remit their foreign earnings to Nigeria and manage funds in both foreign and local currencies.
It read, “The NRNOA enables Non-Resident Nigerians (NRNs) to remit their foreign earnings to Nigeria and manage funds in both foreign and local currencies, while the (NRNIA) enables Non-Resident Nigerians (NRNs) to invest in assets in Nigeria in either foreign currency (FCY) or local currency (Naira).”
“Account holders may maintain both a foreign currency (FCY) account and/or a local currency (Naira) account to facilitate transactions and participate in diverse investment opportunities.”
The bank also explained that NRNs can use their NRNIA to participate in Nigeria’s Diaspora Bond and other debt instruments issued locally specifically targeted at the Nigerian diaspora or available to the investing public.
The account is also to serve as a conduit for NRNs to manage their funds directly in a safe and secure environment, and reduce the reliance on third parties in meeting local commitments and obligations.
According to the bank, effective January 1st 2025, eligible NRNs shall have the opportunity to own any of the non- resident Nigerian accounts, subject to meeting KYC requirements which will be made available in FAQs to be released soon.
“This policy is without prejudice to Memorandum 17 of the CBN Foreign Exchange Manual (2018),” it added
The Independent National Electoral Commission (INEC) has declined the N40 billion allocation proposed in the 2025 budget, calling for a significantly higher amount to meet its operational needs.
INEC Chairman, Prof. Mahmood Yakubu, expressed the commission’s concerns during a budget defense session before a joint committee on INEC and Electoral Matters at the National Assembly on Friday.
The session was chaired by Senator Sarafadeen Alli (APC, Oyo South).
Yakubu highlighted the growing financial demands of conducting elections in Nigeria, stating, “Our proposed budget for 2025 outlines a need for over N126 billion, with detailed breakdowns on how the funds will be utilized.”
He emphasized the importance of adequate funding, noting, “The N40 billion allocated will not cover one-third of our projected expenses, which total over N126 billion.”
Yakubu further explained that the funds were necessary for managing constitutional responsibilities, including off-cycle elections for 21 constituencies and the upcoming Anambra governorship election.
He added, “Personnel costs due to the new minimum wage alone will consume the current allocation.”
The chairman cited previous interventions, such as the N10.5 billion received for the Edo and Ondo elections in 2024 and an additional N500 million for by-elections, as indicators of the financial strain the electoral body faces.
In response, members of the joint committee assured INEC of their support, promising to consider the proposed budget increase in the 2025 fiscal appropriation.
Afenifere, the pan-Yoruba socio-cultural organisation, has called on southwest governors to get ready to take serious action against the influx of bandits into their region.
The organisation said this in a statement by its National Publicity Secretary, Jare Ajayi, in Ibadan, the Oyo State capital.
This is coming days after Seyi Makinde, the Oyo State Governor, disclosed that bandits are infiltrating his state.
Makinde said, “During a security briefing this morning, I learned that some bad elements from the North-West are relocating here due to military heat in their zones.”
Sharing his personal experience, the governor said when he observed his quiet birthday ceremony at Fashola near Oyo Alaafin in December 2024, he got a report that bandits camped two kilometres away from the area he was.
“During my birthday retreat in Fashola, bandits had camped less than two kilometres from where I was staying. This underscores the seriousness of the situation,” he said.
Reacting to this, Afenifere said such a revelation from a state governor should not be handled with levity.
The group, therefore, called on the six governors in the region to “as a matter of urgency, hold a meeting to map out strategies to expel the bandits from the region and to ensure that such elements do not infiltrate Yorubaland at any time again.
“For these objectives to be achieved, there is the need to carry certain groups along. These are the security agencies that will implement whatever security decisions are reached, traditional rulers and heads of local vigilantes known as ‘Ode.’”
While calling on traditional leaders in the region not to keep quiet on the matter, Ajayi urged the governors to include functional, up-to-date equipment in their strategies to combat the bandits and map out strategies to expel them from the region.
- President orders probe into killing of soldiers
The Federal Government would not hire mercenaries to fight terrorism and banditry in the North, Foreign Minister Ambassador Yusuf Tuggar said yesterday.
He explained that engaging mercenaries, which are private armies, to tackle insecurity is unsustainable.
Chief of Defence Staff (CDS) Gen. Christopher Musa also recently ruled out the use of mercenaries, saying the nation’s military is capable of fighting and winning the battle.
Tuggar made the clarification at the State House, Abuja, during a joint news conference with his Chinese counterpart, Wang Yi.
The Chinese foreign minister is in Nigeria on a visit to strengthen bilateral ties.
Noting the limitations of deploying private military companies for security tasks, the minister said fully equipped Nigerian security agencies can meet the challenge.
He called for collaboration with China in domesticating the production of military equipment to eliminate delays associated with foreign procurement.
“Private military companies, no matter where they are coming from, are not the solution to tackling the country’s security challenges,” Tuggar said.
Following the renewed sporadic terrorist attacks in the North, there have been calls for foreign mercenaries, which were once deployed by the Goodluck Jonathan administration.
New terror groups, including Lakurawa, have sprang up, wrecking havoc on towns and villages in the Northwest and Northeast.
On January 4, some suspected terrorists attacked the Army Forward Operation Base (FOB) in Damboa, Borno State. The troops in retaliation killed no fewer than 46 terrorists.
President Bola Ahmed Tinubu yesterday commiserated with the military and families of the slain soldiers.
He ordered an investigation into the attack.
Tuggar said the war against terror can be won if nations collaborate.
He highlighted Nigeria’s leadership role in fostering peace and security within the region and across the continent.
Tuggar said: “Nigeria has consistently proved effective in leading other countries in our region, and I would even say on the continent at large, in addressing challenges to peace and security.”
The minister emphasised the importance of partnerships that involve Nigeria directly in the process, describing China as a reliable ally.
He added: “This is why we work well with countries like China. Where we have a problem is whenever Nigeria is left out of such arrangements.”
Tuggar also stressed the need to prioritise local production of military equipment to ensure efficiency.
He said: “We want to work with countries like China in domesticating the production of military equipment, both kinetic and non-kinetic. This is what we’re looking for, so that we don’t have to go out looking to procure because of the delays and so many rules and regulations. We need to be able to produce locally.”
The minister described Nigeria as a responsible country operating within its constitutional framework, adding that the commitment to law and order has earned the country the confidence of other nations.
Tuggar pointed out that the Chinese minister’s visit would build on the success of the Forum on China-Africa Cooperation (FOCAC) in 2024 and President Bola Ahmed Tinubu’s recent state visit to China.
He explained that discussions with the Chinese delegation focused on mutual interests in economic and political spheres, as well as agreements signed in various sectors, including energy, communications, agriculture, finance, transportation, infrastructure, and petrochemicals.
Tuggar added: “We will continue to work with countries such as China in addressing these challenges and rely on them to help ensure that private military companies and external interference remain outside.”
Tinubu orders probe into soldiers’ killing
Yesterday, President Tinubu ordered a probe into the killing of six soldiers during the attack on the Sabon Gida military base in Damboa, Borno State.
Presidential Adviser on Information and Strategy Bayo Onanuga said in a statement that the president had also directed security agencies to intensify military operations by taking the war to the terrorists.
He said the President extended his heartfelt condolences to the families of the fallen soldiers, describing their sacrifice as a cornerstone of the fight for security.
“Their sacrifice in defending our nation will forever be honoured and remembered,” he said.
Praising the Armed Forces for their swift response, President Tinubu also lauded the military’s air component for its decisive retaliatory strikes, which neutralised many terrorists and destroyed their assets as they attempted to escape.
He said: “This resolute action by the Army demonstrates the capability and readiness of our military to confront and defeat threats to our nation’s security. Their actions testify to our resolve to eradicate terrorism and banditry, paving the way for a future where peace and security prevail for all Nigerians.
“Your sacrifices and dedication do not go unnoticed, and we stand firmly behind you in this ongoing fight to eliminate these threats.”
President Tinubu also appealed to Nigerians and the media to support the military in its efforts to restore peace across the country.
He said: “Together, we can support our security forces in achieving the peace and security our nation deserves.”
Debt servicing consumed 47 per cent of the Federal Government’s total expenditure in the first nine months of 2024, The PUNCH reports.
An analysis of data from the Central Bank of Nigeria’s latest quarterly statistics bulletin highlights the growing burden of debt repayment obligations and its implications for Nigeria’s fiscal sustainability.
In the first nine months of 2024, the Federal Government spent N8.94tn on debt servicing, a sharp increase of 56.8 per cent from N5.69tn in the corresponding period of 2023.
The debt costs accounted for nearly half of the N18.97tn total expenditure for the period, compared to 42 per cent of the N13.57tn spent in 2023.
The rising debt servicing ratio reflects Nigeria’s increasing dependence on borrowing to fund its budgetary operations, particularly as fiscal deficits continue to widen.
The debt-to-revenue ratio further underlines the severity of the situation. In 2023, the Federal Government’s retained revenue of N4.32tn meant that debt servicing accounted for 132 per cent of revenue during the period.
This figure worsened in 2024, when debt servicing consumed 147 percent of the N6.08tn retained revenue.
This trend indicates that Nigeria is borrowing not just to finance its expenditure but also to service existing debts, a fiscal trajectory that raises serious concerns about sustainability.
Recurrent expenditures, which include personnel costs, pensions, transfers, and debt servicing, rose sharply by 45.6 per cent from N10.38tn in 2023 to N15.11tn in 2024.
Personnel costs increased by 20 per cent from N2.99tn to N3.59tn over the same period, reflecting the government’s continued commitment to maintaining public sector salaries despite fiscal challenges.
Overhead costs, including MYTO and service-wide votes, surged by 51.4 per cent from N589.63bn in 2023 to N892.85bn in 2024, while transfers more than doubled from N711.36bn to N1.31tn, representing an 83.8 per cent rise.
However, pensions and gratuities experienced a marginal decline, falling from N339.66bn in 2023 to N336.61bn in 2024.
Despite the government’s attempts to allocate more funds for infrastructural development, the increase in capital expenditure was relatively modest compared to recurrent spending.
Capital spending rose by 20.8 per cent from N3.19tn in 2023 to N3.86tn in 2024, a significant amount but still far overshadowed by the recurrent and debt servicing costs.
The disproportionate allocation of funds highlights how rising debt obligations continue to crowd out critical capital investments, further exacerbating Nigeria’s infrastructure deficit and limiting economic growth potential.
The fiscal deficit widened from N9.25tn in the first nine months of 2023 to N12.89tn during the same period in 2024, marking a 39.3 per cent increase.
This growing deficit highlights the persistent gap between government revenue and expenditure, compounded by escalating debt servicing costs.
With such a large share of revenue allocated to debt repayment, the government’s capacity to fund public services, infrastructure, and other developmental projects is increasingly constrained.
In his national broadcast to mark Nigeria’s 64th Independence Anniversary, President Bola Tinubu boasted that his administration reduced the debt service ratio from 97 per cent to 68 per cent.
Tinubu also said his administration is committed to stopping the vicious cycle of overreliance on borrowing for public spending and the resulting stress on managing scarce government resources caused by debt service.
He noted the country could not continue to service its debt with 90 per cent of its revenue, as this was a recipe for destruction.
However, CBN data shows that the ratio worsened to 147 per cent in the first nine months of 2024.
The global credit ratings agency, Fitch, earlier projected Nigeria’s external debt servicing to rise by $400m to $5.2bn in 2025.
Regarding external debt, the agency said external financing obligations through a combination of multilateral lending, syndicated loans, and potentially commercial borrowing would raise the servicing from $4.8bn in 2024 to $5.2bn in 2025.
This was despite the current administration’s insistence on focusing more on domestic borrowings from the capital market.
Analysts at Cowry Research earlier noted that there is no immediate relief for Nigeria’s debt levels and debt service costs.
“Financing costs are expected to continue consuming a larger portion of the Federal Government’s revenues, while the local currency remains weak against the dollar and the interest rate environment remains tight, reflecting the Central Bank’s monetary tightening measures,” they said.
Speaking earlier with The PUNCH, the President of the Nigerian Economic Society, Prof Adeola Adenikinju, said, “There is little we can do regarding our debt servicing. This is an obligation that we owe, and it will do a lot of damage to our image if we don’t pay. That is a consequence of past years of mismanagement and dependence on debt to run the government.”
He lamented that most of the time, the government does not meet up with the provisions for capital expenditure in the budget.
Adenikinju added, “Even when they say N48tn, you can be assured that they are not going to spend that.”
He noted that spending on debt servicing will not yield any positive benefit for the Nigerian economy.
“It is sad because debt service will not do anything positive for the economy. It is not going to improve infrastructure. It is not going to enhance economic growth. It is not going to yield any significant positive effect on the economy. We have been wasteful in the past, and that is the consequence we have to deal with now,” he said.
Also, the Chief Executive Officer of the CFG Advisory, Tilewa Adebajo, earlier said that Nigeria needed to commence debt negotiation talks with its creditors.
Adebajo noted that the country’s debt servicing now exceeded recurrent and capital expenditures, which put the country in a position where it used the majority of its revenue to service debt.
The PUNCH earlier reported that the International Monetary Fund said that Nigeria allocates the majority of its revenue to debt servicing, leaving limited funds for critical development projects.
Speaking during the Fiscal Monitor press briefing at the IMF/World Bank Annual Meetings in Washington DC, Davide Furceri, Division Chief of the IMF’s Fiscal Affairs Department, emphasised the need for Nigeria to adopt more effective revenue mobilisation strategies to ease this financial burden.
Furceri noted that Nigeria’s debt service-to-revenue ratio stands at around 60 per cent, significantly constraining the government’s ability to invest in social and economic programmes.
He stressed that the country must further reduce the share of its revenue allocated to debt repayments by focusing on broadening its tax base.
He said, “There is a need to grow the revenue-to-GDP ratio. For a country Like Nigeria, the Debt Service-to-Revenue is about 60 per cent. What that means is that a larger part of the revenue of the country goes into debt servicing. What we recommend for countries like Nigeria, if they can improve their revenue mobilisation, they will be able to reduce the portion of the revenue that goes into debt servicing.
“It is important to broaden the tax base in order to have more revenue and especially in Nigeria to put in place a system and mechanism that is transparent and efficient to assist the government in collecting more revenue.”
He called for the implementation of a transparent and efficient tax collection system, urging the government to improve its fiscal operations to generate more income.
The PUNCH recently reported that Tinubu called on world leaders to prioritise debt forgiveness for Nigeria and other developing countries from creditors and multilateral financial institutions.
The President also asked the United Nations to commit to multilateralism by deepening relations among member states, which aligns with the principles of inclusivity, equality, and cooperation.
This was during the General Debate of the 79th Session of the United Nations General Assembly at the UN headquarters in New York, United States.
Represented by Vice President Kashim Shettima at the high-level annual global event, the President said countries of the global South would not make meaningful economic progress without special concessions and a review of their current debt burden.
Nigeria’s electricity generation has continued to hover around an average of 4,500 megawatts despite the country securing loans totalling over $3.23bn in about four years from international financial institutions.
Global institutions such as the World Bank, the African Development Bank, and the Japan International Cooperation Agency have supported the power sector with billions of dollars in loans, but many parts of Nigeria still suffer incessant blackouts.
These funds were approved to finance various projects to address the country’s electricity challenges and improve access to reliable power supply.
However, power generation in the country has persistently hovered around 4,500MW for a population of over 200 million people.
The daily power report obtained by one of our correspondents on Thursday, for instance, showed peak generation reached 4,743MW as of 6 am on Thursday.
However, the average power generation in the past three years has remained at 4,500MW despite efforts by the government.
Since 2020, the World Bank has approved multiple loans to Nigeria’s power sector, focusing on sustainable energy solutions, distribution system upgrades, and overall sector reform.
The Sustainable Power and Irrigation for Nigeria Project, with a principal amount of $500m, was signed in September 2024 to enhance energy reliability and agricultural productivity.
In December 2023, the World Bank signed agreements for the Nigeria Distributed Access through Renewable Energy Scale-up Project, totalling $750m across three International Development Association credits.
This project is expected to expand renewable energy access and distributed electricity solutions.
In June 2023, the World Bank approved $1.5bn for the Power Sector Recovery Performance-Based Operation, which includes $301m already effective, $449m currently disbursing, and $750m from 2020, of which $715m has been disbursed.
This programme was designed to improve financial sustainability and operational efficiency within the power sector.
Also, the Nigeria Distribution Sector Recovery Programme, with $500m approved in February 2021, aims to support the capital and technical needs of electricity distribution companies.
On July 31, 2024, the African Development Bank Group approved a loan of $500m to the Federal Republic of Nigeria to help transform the country’s electricity infrastructure and improve access to cleaner energy sources.
According to a statement from the AfDB, this funding will finance the first phase of the Economic Governance and Energy Transition Support Programme, aimed at transforming the country’s electricity infrastructure and improving access to cleaner energy sources.
The statement also noted that the loan will help close the financing gap in the Federal Budget for the 2024/25 fiscal year, specifically supporting the implementation of Nigeria’s new Electricity Act and the Nigeria Energy Transition Plan.
These initiatives are designed to decentralise the electricity supply industry and attract investments from subnational governments and the private sector.
In September 2022, the Federal Government said it would partner with the Japan International Cooperation Agency to implement a $200m electricity transmission expansion programme in Lagos and Ogun states.
The former Minister of Power, Abubakar Aliyu, had said the aim of the programme was to expand the transmission network in the identified states so as to effectively support industries in the South-West.
However, there have been some challenges around the implementation of a number of the projects linked to the loans.
The PUNCH earlier reported that the $500m Nigeria Distribution Sector Recovery Programme, aimed at addressing significant challenges in the country’s electricity distribution sector, was hit by several delays.
A World Bank document on the restructuring of the project, obtained by The PUNCH on Monday, indicated that these delays, primarily due to a court case filed by the Association of Meter Manufacturers of Nigeria and a slow approval from the National Assembly, have threatened the timely implementation of the project.
The DISREP, approved by the World Bank in February 2021, is designed to improve the financial and technical performance of Nigeria’s electricity distribution companies.
The programme is a hybrid one, combining a Programme-for-Results component valued at $345m, with an Investment Project Financing component of $155m.
The funding aims to enhance Nigeria’s electricity sector by improving Discos’ performance, addressing the metering gap, rehabilitating distribution infrastructure, and strengthening governance.
However, the implementation of the project has been delayed due to a few factors, including a legal challenge that impacted the procurement of smart meters.
With the challenges in the sector, power generation in Nigeria has not improved, and the country continues to experience erratic electricity supply and frequent national grid collapses, with over 100 incidents recorded in the past decade.
Nigeria has been battling epileptic power supply, affecting the productivity of small businesses and manufacturers. This challenge is exacerbated by the frequent collapse of the national grid, with a total of 12 breakdowns recorded in 2024.
These challenges, compounded by infrastructure deficiencies and delays in implementing critical reforms, have raised questions about the effective utilisation of these funds.
To resolve recurring issues, the Minister of Power, Adelabu Adebayo, revealed that Nigeria requires at least $10bn over the next 10 years to achieve 24-hour power supply across the country.
However, several underlying factors have hindered the presidential goal to generate 6,000MW this year.
The government has pledged to address these inefficiencies and ensure that the loans yield the intended results.
The PUNCH earlier reported that the Ministry of Power plans to allocate a significant portion of its N1.2tn 2025 budget towards financing a range of multilateral and bilateral loan projects to enhance electricity generation and distribution nationwide.
Stakeholders within the power sector have emphasised the need for transparency and accountability in managing these resources to achieve tangible improvements in electricity generation.
However, as of now, the stagnation in power output persists, leaving many Nigerians to contend with unreliable power supply despite the substantial financial inflows in the sector.
Recall that Adelabu had promised Nigerians that there would be incremental power supply in the country under his watch as the Minister of Power. According to him, the Tinubu administration would do everything possible to make electricity accessible to all.
He promised that 1,200 MW would be added to the 4,800MW generated in May to raise the generated power to 6,000 MW by September but all of these goals were not achieved.
As an alternative, the government said it has begun moves to harness renewable energy sources as a critical part of the nation’s energy mix, to ensure sustainable power supply to citizens.
The government also revealed plans to provide Nigerians with at least 20 hours of daily electricity by 2027.
However, many challenges are hampering the actualisation of these targets, ranging from the multiple grid collapse cases, growing debts to power generation companies, and the vandalism of critical power infrastructure, to ageing infrastructure, inadequate maintenance, and insufficient investment in the power sector.
Despite having an installed capacity of approximately 12,500MW, Nigeria often generates only a fraction of this, leaving many areas without reliable electricity.
Commenting, a power expert, Mr Chinedu Amah, queried reasons why the government is borrowing to invest in a sector it claims to have privatised.
Amah, who is the founder of Spark Nigeria Ltd, noted the loans remain of no value if there is no electricity.
Speaking in a telephone interview on Thursday, the power expert urged the House and Senate Committees overseeing the audit of the borrowing process to take action.
He said, “The first question is why is the government investing in a space, it says it has privatised. That’s the first question. Why is it throwing investments and even borrowings at a sector it has privatised?
“Does the Federal Government borrow money to improve the telecommunications sector or automobile companies? That is the first question.
“The next thing is what was it spent on, who is auditing that process, and what are the House and Senate Committees saying concerning those borrowings and their effectiveness in improving power supply and the electricity market.
“If they are borrowing, what is the pathway for recovering the funds for repayment? Borrowing is not a problem, but it’s about what you are spending the money you borrowed on and whether you are spending it judiciously.
“If you are spending it, how do you hope to recover it for value, and when are you paying back that value?
“But at the end of the day, whether they borrow N100bn or whatever, if Nigerians don’t see the light at home, the loans have no value. It must translate to a true value, and it’s an adequate power supply.”
The President of the Nigeria Consumer Protection Network, Kunle Olubiyo, in a chat with our reporter, raised concerns about project conceptualisation in Nigeria, particularly in the energy sector.
According to him, while projects design and delivery globally are aimed at achieving intended objectives, in Nigeria, many projects are often designed to facilitate the pilfering of public funds.
He said at the generation level, critical issues like the lack of a spinning reserve persist despite the availability of funds that could have been allocated to address such challenges.
This oversight, he said, reflects a systemic neglect of pressing infrastructure needs.
Olubiyo also said the prevalence of abandoned projects had left many states across the country severely underserved in terms of energy supply.
He said that even when those projects are completed, they often fail to meet the current energy load demand due to their outdated designs and limited capacity.
He said government funding alone would not suffice to address the challenges, calling for partnerships with the private sector and commercial banks.
The Federal Government has confirmed plans to increase telecoms tariffs but assured Nigerians it won’t be by 100% as requested by operators.
The Minister of Communications, Innovation, and Digital Economy, Bosun Tijan, made this known at a stakeholders’ meeting in Abuja on Wednesday.
He said the Nigerian Communications Commission (NCC) would come up with modalities for tariff adjustment in the telecoms industry.
Tijani said, “We’ve look at a number of things in terms of how to ensure that can meaningfully contribute to the development of Nigeria.
“Some of those things include implementing the Executive Order around ensuring that we can protect infrastructure around telecoms, driving up significantly local content and importantly, ensuring the sustainability of the companies themselves that as we see inflation across the world that telecommunications companies, we don’t run them down but we allow them to continue to be sustainable so that they can contribute to our economy.
“You have seen over the past weeks that there has been agitation from some of these companies to increase tariffs, requesting for 100% tariff increase. This is not something that as a government we will be able to subscribe to at the minute.”
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The presidential candidate of the Labour Party in the 2023 election, Peter Obi, has debunked rumours of him being arrested, describing it as “recurring fake news.
Some social media posts had claimed that the former Anambra State governor was arrested in Abuja.
But in a post on his X handle on Wednesday, Obi said the claims are entirely false and stated that he is currently at his home in Onitsha, Anambra State.
He recalled how similar “lies” had been circulated last September that the Department for Security Services (DSS) invaded his home while he was in Rwanda.
The Labour Party chieftain said that the motive of those peddling the rumours cannot be positive but urged Nigerians not to allow it to distract them from the critical challenges facing the nation.
The post reads, “The recurring fake News on me. I have been made aware of a circulating fake News about my alleged arrest. Let me state unequivocally that these claims are entirely false. I am currently at my home in Onitsha, Anambra State.
“Such fake News on my person has become a pastime for some people. Recall last year September, when I was in Rwanda, similar lies had gone out that DSS invaded my house; now, while I was in my home in Onitsha, Anambra State, they said I was arrested in Abuja.
“The motive of these peddlers cannot be positive but let us not allow baseless rumors to distract us from the critical challenges we face as a nation. I Thank the public for the concern, support, and dedication to the cause of a better Nigeria that is possible!!!”
Obi had on Tuesday alleged threat to his life following his criticism of President Bola Tinubu’s administration in his new year message.
Obi’s allegation follows a statement credited to the national spokesperson of the All Progressives Congress (APC), Felix Morka, in a recent interview.
Morka was quoted to have said that “Peter Obi has crossed the line so many times and has it coming to him whatever he gets”. However, the APC spokesperson has denied threatening the opposition leader or his family.
A chieftain of the All Progressives Congress (APC), Nicolas Felix, has lauded President Bola Ahmed Tinubu, highlighting his preparedness and unwavering commitment to Nigeria’s progress.
Following a meeting with the President at his Ikoyi residence in Lagos on Monday, Felix expressed admiration for Tinubu’s leadership qualities.
“Dr. Reuben Abati’s assertion that the President has settled down on his job is, in fact, an understatement.
“This is not just a leader settling in; this is someone who came fully prepared and knows exactly what he’s doing,” Felix remarked.
The conversation between Felix and Tinubu centered on strategies to advance Nigeria’s development and address pressing national challenges.
Felix praised the administration’s reforms, particularly the establishment of the Bola Ahmed Tinubu Technology Innovation Complex (BATTIC), which he said underscores the President’s dedication to a technology-driven future.
He also commended Tinubu’s commitment to inclusivity, evident in the substantial representation of young people and women in his government.
“I thanked the President for fulfilling his campaign promises to empower young people and women within his administration.
“It’s unprecedented to see such strong representation at the federal level. It shows his commitment to building an inclusive and diverse leadership,” he said.
Felix, who contested against Tinubu during the APC presidential primary for the 2023 election, further emphasized his confidence in Tinubu’s capabilities, noting their discussion on key policies.
“I had the privilege of discussing key policies with him, and I was struck by his insight and clear understanding of the issues. Nigerians didn’t elect a novice.
“We have a leader who is not only qualified but also fully equipped to steer the country in the right direction. I must say, we are in very safe hands,” Felix stated.
The Defence Headquarters has confirmed the killing of six soldiers during a raid by the Islamic State/ Boko Haram group on its military base in Borno State.
Channels Television published reports of the incident on Monday.
According to the report, two military officers said that the fighters from Islamic State West Africa Province (ISWAP) reportedly launched a pre-dawn attack in trucks and on motorcycles on Sunday on the base in Sabon Gari in Borno State’s Damboa district.
The insurgents reportedly set fire to the base along with army vehicles. “We lost six soldiers in the ISWAP terrorists attack on the base after an intense gun battle,” AFP quoted one of the officers.
Fighter jets were reportedly deployed from the regional capital Maiduguri 100 kilometres (62 miles) away, and struck the attackers as they retreated.
In an update statement on Wednesday, the DHQ said although on the whole, 34 terrorists were killed and 23 AK 47 weapons recovered, six of its personnel were killed in action.
The DHQ also said its troops recovered over 200 rounds of 7.62mm special ammunition.
The statement said “On 4 January 2025, an unspecified number of ISWAP/BHT terrorists riding on motorcycles and Gun trucks engaged troops deployed in SABON GARI Village of DAMBOA Local Government Area of Borno State in a firefight. The terrorists had attempted to surprise troops and retaliate against the recent killing of their commander and combatants by troops.
“The terrorists were taken unaware when troops fighting patrol returning to base foiled their planned attack as soon as the attack commenced. Additionally, the troop’s reinforcement team comprised of elements of the Civilian Joint Taskforce, vigilantes as well as hybrid forces timely arrived at the scene to overpower the terrorists.
“Furthermore, though troops reinforcement team encountered an Improvise Explosive Device injuring the Vigilante Commander. The reinforcement team arrived in time to decimate the fleeing terrorist.
“Furthermore, the air component of Operation HADIN KAI conducted air interdiction on the fleeing terrorist. Battle Damage Assessment revealed several killed terrorists and recovered weapons.
“On the whole, 34 terrorists were killed and 23 AK 47 weapons were recovered. Troops also recovered with over 200 rounds of 7.62mm special ammunition. Sadly, 6 personnel were killed in action.
“Kindly note that the names of killed in-action personnel are withheld to allow administrative procedures of notifying their next of kin to be concluded. Accordingly, the media is requested to respect the process, please.”
The Armed Forces reiterated that it is “profoundly conscious” of its role and responsibility in ending insurgency and terrorism in the nation.
It added that troops remain committed to the course of defeating the terrorists.
Since 2009, northern Nigeria has been plagued by various jihadist groups, including Boko Haram and a rival faction the Islamic State in West Africa (ISWAP), as well as armed criminal groups.
The conflict has killed more than 40,000 people and displaced around two million from their homes in the northeast.
In November, five Nigerian troops were killed and 10 more injured when ISWAP fighters raided a base in Kareto village near the border with Niger.
- We are working hard for prosperity of our people
- Mahama steps in, promises reforms
President Bola Ahmed Tinubu yesterday urged world leaders to change their negative perception of Africa.
According to him, African leaders are working hard for the prosperity of their respective countries.
He called for collaborative efforts to tackle social and economic malaise plaguing the continent.
Speaking as a special guest of honour at the inauguration of John Dramani Mahama as Ghana’s 12th president in Accra yesterday, President Tinubu said: “We have nothing to prove to anyone except ourselves.
“We have found the critical path to our success.
“We shall lift our nations out of poverty and build a resilient economy at our own pace.
“With focus, we can tackle our people’s most pressing concerns: poverty, youth unemployment, instability, insurgency, and many other problems hampering our desired progress.”
Mahama, president of the country between 2012 and 2017, returned to power after taking his oath of office before many dignitaries from Africa and the Commonwealth of Nations.
Many heads of state were in Accra for the event. These include: Presidents William Ruto (Kenya), Julius Maada Bio (Sierra Leone), Bassirou Diomaye Faye (Senegal), Felix Tshisekedi (Congo DR), Paul Kagame (Rwandan), Brice Oligui Nguema (Gabon), and Mamadi Doumbouya (Guinea).
Other dignitaries include United Kingdom’s Minister for Africa Lord Collins, Burkina Faso’s leader Ibrahim Traore, Commonwealth Secretary-General Patricia Scotland, former Ghanaian Presidents John Kuffor and Nana Akufo-Addo, former Nigeria’s Presidents Olusegun Obasanjo and Goodluck Jonathan, United Nations Deputy Secretary-General Amina Mohammed, former Ghanaian First Lady Mrs. Konadu Agyemang Rawlings and wife of immediate past Vice President Mrs. Samira Bawumia.
Foreign delegations, envoys, industry leaders, politicians and traditional rulers also witnessed the event.
President Tinubu was accompanied by the Minister of State for Foreign Affairs, Mrs. Bianca Ojukwu.
Governors Babajide Sanwo-Olu (Lagos), Babagana Zulum (Borno), and Ademola Adeleke (Osun) were at the event as well as the Presidential Adviser on Information and Strategy Bayo Onanuga.
Mahama succeeded Akufo-Addo, who stepped down after serving two terms.
He polled over 50 per cent of the votes, a landmark President Tinubu said reflected the deepening of democracy in Africa.
“Today, I am here, not only as the President of Nigeria, but also as an African in resolute support for Ghana and her people,” he said.
The President described Mahama’s inauguration as a source of pride and honour for Ghanaians, Africa, and the Diaspora.
He added: “We celebrate African Democracy today as Ghana and her beloved people mark the transition from one democratic government to another.
“This moment does more than symbolise another milestone in the evolution of Ghanaian democratic society.
“It lays to bed the question of whether Ghana and Africa are capable of democratic and productive endeavours. Ghana has answered that question resoundingly.”
President Tinubu said as Ghana drew inspiration and strength from its first leader, Dr. Kwame Nkrumah, and other past leaders, Nigeria also drew inspiration from its founding leaders, who fought for her independence and cherished the close relationship between the two nations.
He added: “May we always walk in the way and the spirit of these enlightened leaders. Ghana is in harmony with that spirit, and President John Mahama’s inauguration today reflects that.”
Hailing Ghanaias for electing Mahama, President Tinubu said: “Your new president is a man of patriotic vision and substance. He loves his nation and its people to the core.
“He believes that your nation has a mission and intends for you all to fulfil it. No one can ask more of a leader than that.”
He expressed confidence that the new government under Mahama would work with Nigeria to strengthen the powerful bond, leading to greater shared prosperity for the citizens of the countries.
President Tinubu stressed: “I have no doubt that your administration will bring about positive change and progress.
“Your ascension to power should also mark a new and invigorated momentum in pursuing sub-regional integration and progress.”
Assuring the Ghanaian leader of his support, Tinubu said: “President John Mahama and I share a deep friendship. My dear brother, I am here to work with you.
“You know you can count on Nigeria’s support and goodwill whenever needed. We are your brothers and sisters. The bond is strong and cannot be broken.
“It lays to bed the question of whether Ghana and Africa are capable of democratic and productive endeavours. Ghana has answered that question resoundingly.
“It is time that Africa’s critics stop forgetting the strides your nation, Nigeria, and others have made by continuing to ask us to prove ourselves.
“We have nothing to prove to anyone except ourselves.”
He said African nations would stand firm against external forces seeking to disrupt their unity.
President Tinubu added: “Never, never shall we harm others, and never allow any outsider to hurt us or disrupt the unity for which so many of our heroes gave their sweat, blood, and very lives to achieve.”
President Tinubu also expressed optimism about a future of shared prosperity for Africa, guided by the principles of dialogue and cooperation.
He said: “Let us all look forward to a future filled with hope, opportunity, and prosperity. God bless Ghana, Nigeria, ECOWAS, and our beloved Africa.”
Mahama to boost economy
Mahama promised to overcome public discontent by boosting the economy, creating jobs, initiating constitutional reforms and fostering good governance.
“We are a people battered by economic crises and hardships. But there’s hope on the horizon,” Mahama said, amid cheers from the crowd.
He added: “We’ll focus our initial efforts on four critical areas. The first is economic restoration and stabilisation of the macroeconomic environment.
“The second is the improvement of the business and investment environment to ensure that Ghana is once again open for business.
“The third is governance and constitutional reforms. And the final, but not the least, is accountability and the fight against corruption.
“My brothers and sisters, actions have always spoken louder than words.
“With that in mind, I have entered into a covenant with you, the good people of Ghana, in which I have enumerated 26 actions that I’ll take within my first 120 days.
“There is reason for hope, and there is every reason for hope, but we must also have faith because faith empowers us to trust that things will happen.
“With faith, you believe what you know, and that is why we need faith to be able to achieve our reset.
“We need a reset with the faith we have in our country and our leadership.
“We need a reset with the faith we have in our institutions. We need a reset with our faith in our dear nation, Ghana, and by that, I mean in all of us, because all of us are Ghana. You are Ghana, and I am Ghana.
“All of you seated here, Ghanaian citizens, you are Ghana. The people who are with you or near you, as you watch this on television in your homes or listen on the radio or follow on social media, are what we call Ghana.”
Mahama said his new economic model would be anchored on agriculture and agribusiness, adding that he would provide jobs for young people, stimulate local industry and attract foreign investment.